Secret Settlement Ends Restaurateurs` Feud With Ex-partner

A secret out-of-court settlement Thursday ended a 3-year-old court case ``about love and war,`` between the Testa family and a former managing partner of the family`s famous Palm Beach restaurant.

The settlement, which came during the fourth day of a Palm Beach County Circuit Court trial that pitted Joseph Testa, 77, and his brother Michele Testa Jr., 67, against Michele Testa`s former son-in-law Joseph Striefel, was reached privately during a noon recess.

``The case is settled and we took an oath of silence,`` said Striefel`s attorney Ronald Sales.

The terms of the settlement, reached after a six-member jury had heard all of the witnesses on Striefel`s side and two defense witnesses, were not disclosed but Sales termed the settlement ``amicable.``

The legal battle stemmed from the November 1981 firing of Striefel, who had been the managing partner of the Testa restaurants in Bar Harbor, Maine, and Palm Beach.

The restaurant operation that bears the Testa name had been started by Michele Testa Sr. in 1921 and was passed on to his sons.

After the senior Testa`s death in 1975, the brothers turned the restaurants into a corporation.

In 1978, Striefel received stock in the corporation and was named as a director as well as vice president and treasurer, according to court records.

He was also in charge of management of the restaurants, the Testas` attorney, Michael Kranz, told the jury during opening arguments.

Kranz said that after a few years, Striefel`s job performance declined.

``As time went on, he changed. He became less interested,`` Kranz told the jury.

In 1981, the brothers fired Striefel and in early 1982 fought to have him removed as a member of the board of directors.

Kranz argued that the restaurants were run more effectively after Striefel was fired.

``Ever since Joseph Striefel was terminated, the corporation started to do better,`` Kranz said.

The Testas contended that Striefel was fired because he was not doing a good job of running the restaurants.

But Sales contended that the firing was linked to Striefel`s divorce from the daughter of Michele Testa, an argument that was denied by the Testas.

``This is a case about love and war,`` Sales told the jury in his opening remarks.

``The individual defendants are party to a fraudulent conspiracy to exclude Striefel from participating in the management or any receipt of benefits from the . . . corporation,`` Sales wrote in the lawsuit filed in 1983.

Throughout the legal battle, both sides made claims of misuse of the corporation money by the other side.